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8-K - CURRENT REPORT - AEMETIS, INC | amtx_8k.htm |
Exhibit 99.1
External Investor Relations Contact:
Christine Petraglia
PCG Advisory Group
(646) 731-9817
christine@pcgadvisory.com
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Company, Investor Relations
& Media Contact:
Satya Chillara
(408) 213-0939
schillara@aemetis.com
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Aemetis, Inc. Reports Third Quarter 2016 Financial
Results
CUPERTINO, Calif. – November 14, 2016 –
Aemetis,
Inc. (NASDAQ: AMTX), an
advanced renewable fuels and biochemicals company, today announced
its financial results for the three and nine months ended September
30, 2016.
“Gross profit continues to improve, from 5.9% last quarter to
9.3% during the third quarter. This improvement allowed us to
achieve EBITDA of $3 million during the first three quarters of
2016,” said Eric McAfee, Chairman and CEO of Aemetis, Inc.
“Going forward, we expect favorable pricing from the record
2016 corn harvest and believe our ethanol business will perform
well during the fourth quarter. Additionally, in September 2016, we
launched a $50 million EB-5 funding program that allows us to
continue repaying high cost senior bridge loan debt, which we
expect will result in significant interest rate savings,”
added McAfee.
Today, Aemetis will host an earnings review call at 11:00 am
Pacific (PT).
Live
Participant Dial In (Toll Free): 866-932-0173
Live
Participant Dial In (International): 785-424-1630
For details on the call, visit: http://www.aemetis.com/investors/conference-calls/.
Financial Results for the Three Months Ended September 30,
2016
Revenues
were $39.4 million for the third quarter of 2016, compared to $38.5
million for the third quarter of 2015. The increase in revenue was
primarily attributable to increases in ethanol and wet distiller’s grain
volumes. Gross margin for the third quarter of 2016 was $3.7
million, a major improvement over the gross margin of $1.0 million
during the third quarter of 2015. Gross margin improvement was due to an 11%
decrease in the cost of feedstock.
Selling, general and administrative expenses were $3.2 million in
the third quarter of 2016, compared to $2.8 million in the third
quarter of 2015. The increase in selling, general and
administrative expenses was driven by marketing expense and
employee compensation compared to the same period of the prior
year.
1
Operating income was $357 thousand for the third quarter of 2016,
compared to an operating loss of $1.9 million for the same period
in 2015.
Net loss was $4.1 million for the third quarter of 2016, compared
to a net loss of $5.8 million for the third quarter of
2015.
We continue to experience good operational results from our North
America ethanol business with gross margins at 10.3% of segment
revenues. Our largest contributor to the net loss is interest
expense of $4.5 million. We continue our efforts to lower our cost
of capital through a combination of debt refinancing as well as
escrow releases from the EB-5 financings.
The fundamental health and improvement in our operating North
America business is reflected in Adjusted EBITDA for the third
quarter of 2016, which increased to $1.75 million compared to
Adjusted EBITDA loss of $522 thousand for the same period in
2015.
Cash at the end of the third quarter of 2016 was $652 thousand,
compared to $283 thousand at the end of the fourth quarter of
2015.
Financial Results for the Nine Months Ended September 30,
2016
Revenues
were $105.8 million for the nine months ended September 30, 2016,
compared to $111.3 million for the same period in 2015. Decrease in
ethanol volumes in the nine
months ended September 30, 2016
compared to the same period in 2015 resulted in the revenue decline
for the first nine months of 2016. Gross profit for the nine
months ended September 30, 2016 was $7.7 million, a significant
increase from $2.7 million during the same period in 2015.
During this period, gross profit
growth was attributable to lower corn prices in addition to the
usage of grain sorghum which allowed us to receive grant
funds.
Selling, general and administrative expenses were $9.1 million
during the nine months ended September 30, 2016, compared to $9.6
million during the same period in 2015. The decrease in selling,
general and administrative expenses was primarily attributable to
marketing expense and employee compensation compared to the same
period of the prior year.
Operating loss decreased to $1.7 million for the nine months ended
September 30, 2016, compared to operating loss of $7.1 million for
the same period in 2015.
Net loss of $14.2 million for the nine months ended September 30,
2016 decreased in comparison to a net loss of $20.7 million during
the same period in 2015.
The fundamental health and improvement in our operating North
America business is reflected in Adjusted EBITDA for the nine
months ended September 30, 2016, which was $3.0 million, a $6.0
million improvement compared to Adjusted EBITDA loss of $3.0
million for the same period in 2015.
2
About Aemetis
Headquartered in Cupertino, California, Aemetis is an advanced
renewable fuels and biochemicals company focused on the
acquisition, development and commercialization of innovative
technologies that replace traditional petroleum-based products by
the conversion of second-generation ethanol and biodiesel plants
into advanced biorefineries. Founded in 2006, Aemetis owns and
operates a 60 million gallon per year ethanol production facility
in California’s Central Valley, near Modesto. Aemetis also
owns and operates a 50 million gallon per year renewable chemical
and advanced fuel production facility on the East Coast of India
producing high quality distilled biodiesel and refined glycerin for
customers in India, the US and Europe. Aemetis operates a research
and development laboratory at the Maryland Biotech Center, and
holds a portfolio of patents and related technology licenses for
the production of renewable fuels and biochemicals. For additional
information about Aemetis, please visit www.aemetis.com.
NON-GAAP FINANCIAL INFORMATION
We have provided non-GAAP measures as a supplement to financial
results based on GAAP. A reconciliation of the non-GAAP measures to
the most directly comparable GAAP measures is included in the
accompanying supplemental data. Adjusted EBITDA is
defined as net income/(loss) plus (to the extent deducted in
calculating such net income) interest expense, loss on
extinguishment, income tax expense, intangible and other
amortization expense, depreciation expense and share-based
compensation expense.
Adjusted EBITDA is not calculated in accordance with GAAP and
should not be considered as an alternative to net income/(loss),
operating income or any other performance measures derived in
accordance with GAAP or to cash flows from operating, investing or
financing activities as an indicator of cash flows or as a measure
of liquidity. Adjusted EBITDA is presented solely as a supplemental
disclosure because management believes that it is a useful
performance measure that is widely used within the industry in
which we operate. In addition, management uses Adjusted EBITDA for
reviewing financial results and for budgeting and planning
purposes. EBITDA measures are not calculated in the same manner by
all companies and, accordingly, may not be an appropriate measure
for comparison.
Safe Harbor Statement
This news release contains forward-looking statements, including
statements regarding our assumptions, projections, expectations,
targets, intentions or beliefs about future events or other
statements that are not historical facts. Forward-looking
statements in this news release include, without limitation, the
impact of input pricing on our gross margins, the timing and
consummation of our EB-5 program, the expected effect of debt
repayment on our interest expense and net income, and our
expectations for growth in the overall ethanol market. Words or
phrases such as “anticipates,” “may,”
“will,” “should,” “believes,”
“estimates,” “expects,”
“intends,” “plans,” “predicts,”
“projects,” “targets,” “will likely
result,” “will continue” or similar expressions
are intended to identify forward-looking statements. These
forward-looking statements are based on current assumptions and
predictions and are subject to numerous risks and uncertainties.
Actual results or events could differ materially from those set
forth or implied by such forward-looking statements and related
assumptions due to certain factors, including, without limitation,
competition in the ethanol and other industries in which we
operate, commodity market risks including those that may result
from current weather conditions, financial market risks, customer
adoption, counter-party risks, risks associated with changes to
federal policy or regulation, completion of our acquisition of
Edeniq, and other risks detailed in our reports filed with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2015, our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2016 and in
our subsequent filings with the SEC. We are not obligated, and do
not intend, to update any of these forward-looking statements at
any time unless an update is required by applicable securities
laws.
(Tables follow)
3
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
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For the three months ended September 30, 2016
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For the nine months ended September 30, 2016
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||
(in thousands, except per share)
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2016
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2015
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2016
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2015
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Revenues
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$39,377
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$38,510
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$105,762
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$111,303
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Cost
of goods sold
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35,711
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37,476
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98,066
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108,548
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Gross
profit
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3,666
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1,034
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7,696
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2,755
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Research
and development expenses
|
87
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117
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290
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330
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Selling,
general and administrative expenses
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3,222
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2,774
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9,123
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9,556
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Operating
income/(loss)
|
357
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(1,857)
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(1,717)
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(7,131)
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Interest
rate expense
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3,046
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2,610
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8,679
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7,641
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Amortization
expense
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1,425
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1,258
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4,269
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5,386
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Loss
on debt extinguishment
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-
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-
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-
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330
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Other
expense/(income)
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(19)
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30
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(480)
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191
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Loss
before income taxes
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(4,095)
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(5,755)
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(14,185)
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(20,679)
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|
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Income
tax expense
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-
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-
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6
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6
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Net
loss
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$(4,095)
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$(5,755)
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$(14,191)
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$(20,685)
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Net loss per common
share
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Basic
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$(0.21)
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$(0.29)
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$(0.72)
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$(1.04)
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Diluted
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$(0.21)
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$(0.29)
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$(0.72)
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$(1.04)
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Weighted average
shares outstanding
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|
|
|
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Basic
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19,833
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19,521
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19,741
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19,898
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Diluted
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19,833
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19,521
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19,741
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19,898
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4
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited, in thousands)
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September 30,
2016
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December 31,
2015
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Assets
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|
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Current
assets:
|
|
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Cash
and cash equivalents
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$652
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$283
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Accounts
receivable
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1,013
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1,166
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Inventories
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3,982
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4,804
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Prepaid expenses
and Other current assets
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1,716
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1,749
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Total current
assets
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7,363
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8,002
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Property,
plant and equipment, Net
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67,543
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70,718
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Goodwill,
Intangibles and Other assets
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4,438
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4,421
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Total assets
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$79,344
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$83,141
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Liabilities and stockholders' deficit
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Current
liabilities:
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Accounts
payable
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8,808
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10,183
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Current portion of
long term debt, notes and working capital
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4,991
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5,607
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Short term
borrowings
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7,555
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6,340
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Other current
liabilities
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8,015
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7,167
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Total
current liabilities
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29,369
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29,297
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Long
term liabilities
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Senior
secured notes
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68,598
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60,925
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EB-5
notes
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24,000
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22,500
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Other
long term
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5,760
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5,713
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Stockholders'
deficit
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(48,383)
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(35,294)
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Total liabilities and stockholders' deficit
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$79,344
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$83,141
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5
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/
(LOSS)
(unaudited, in thousands)
|
For the three months ended September 30, 2016
|
For the nine months ended September 30, 2016
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||
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2016
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2015
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2016
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2015
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Net
loss
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$(4,095)
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$(5,755)
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$(14,191)
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$(20,685)
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Adjustments:
|
|
|
|
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Interest
rate expense
|
3,046
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2,610
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8,679
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7,641
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Amortization
expense
|
1,425
|
1,258
|
4,269
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5,386
|
Loss
on debt extinguishment
|
-
|
-
|
-
|
330
|
Income
tax expense
|
-
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-
|
6
|
6
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Intangibles
and other amortization
expense
|
32
|
32
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95
|
96
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Depreciation
expense
|
1,170
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1,172
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3,523
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3,560
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Share-based
compensation
|
172
|
161
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573
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694
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Total
adjustments
|
5,845
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5,233
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17,145
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17,713
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Adjusted
EBITDA
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$1,750
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$(522)
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$2,954
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$(2,972)
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PRODUCTION AND PRICE PERFORMANCE
(unaudited)
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For the three months ended September 30, 2016
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For the nine months ended September 30, 2016
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||
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2016
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2015
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2016
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2015
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Ethanol
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Gallons
Sold (in millions)
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14.8
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14.2
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41.0
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42.6
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Average
Sales Price/Gallon
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$1.75
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$1.76
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$1.74
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$1.74
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|
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WDG
|
|
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Tons
Sold (in thousands)
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97.2
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88.6
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277.3
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275.9
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Average
Sales Price/Ton
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$74
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$75
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$73
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$82
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Biodiesel
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|
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Metric
tons sold (in thousands)
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6.0
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7.6
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13.9
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12.1
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Average
Sales Price/Metric ton
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$824
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$685
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$733
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$734
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Refined Glycerin
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|
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Metric
tons sold (in thousands)
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0.9
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1.2
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2.6
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4.0
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Average
Sales Price/Metric ton
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$619
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$713
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$592
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$667
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6